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CSSB 4002(FIN): "An Act amending the bulk fuel bridge loan fund; amending the power cost equalization program, repealing the exclusion from eligibility for power cost equalization for certain power projects that take their power from hydroelectric facilities, and amending the definition of 'eligible electric utility' as it applies to the power cost equalization program and the grant program for small power projects for utility improvements; establishing the Alaska resource rebate program and relating to that program; and providing for an effective date."

00                      CS FOR SENATE BILL NO. 4002(FIN)                                                                   
01 "An Act amending the bulk fuel bridge loan fund; amending the power cost equalization                                   
02 program, repealing the exclusion from eligibility for power cost equalization for certain                               
03 power projects that take their power from hydroelectric facilities, and amending the                                    
04 definition of 'eligible electric utility' as it applies to the power cost equalization program                          
05 and the grant program for small power projects for utility improvements; establishing                                   
06 the Alaska resource rebate program and relating to that program; and providing for an                                   
07 effective date."                                                                                                        
08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
09    * Section 1. AS 29.60.660(c) is amended to read:                                                                   
10            (c)  Loans made from the bulk fuel bridge loan fund to one borrower in a fiscal                              
11       year                                                                                                              
12                 (1)  may not exceed $750,000 [$500,000]; and                                                        
13                 (2)  shall be repaid within one year after the date of the award.                                       
01    * Sec. 2. AS 42.45.110(c) is repealed and reenacted to read:                                                       
02            (c)  The amount of power costs for which equalization is paid to an electric                                 
03       utility is the difference between                                                                                 
04                 (1)  10 cents a kilowatt-hour; and                                                                      
05                 (2)  the lowest of the following:                                                                       
06                      (A)  $1.15 a kilowatt-hour;                                                                        
07                      (B)  power costs as determined by the commission under (a) of                                      
08            this section; or                                                                                             
09                      (C)  the average rate for each eligible kilowatt-hour sold.                                        
10    * Sec. 3. AS 42.45.110(c), as repealed and reenacted by sec. 2 of this Act, is repealed and                        
11 reenacted to read:                                                                                                      
12            (c)  The amount of power cost equalization provided for each kilowatt-hour                                   
13       under (b) of this section may not exceed 95 percent of the power costs, or the average                            
14       rate for each eligible kilowatt-hour sold, whichever is less, as determined by the                                
15       commission. However,                                                                                              
16                 (1)  during the state fiscal year that began July 1, 1999, the power costs                              
17       for which power cost equalization were paid to an electric utility were limited to                                
18       minimum power costs of more than 12 cents a kilowatt-hour and less than 52.5 cents a                              
19       kilowatt-hour; and                                                                                                
20                 (2)  during each following state fiscal year, the commission shall adjust                               
21       the power costs for which power cost equalization may be paid to an electric utility                              
22       based on the weighted average retail residential rate in Anchorage, Fairbanks, and                                
23       Juneau; however, the commission may not adjust the power costs under this paragraph                               
24       to reduce the amount below the lower limit set out in (1) of this subsection.                                     
25    * Sec. 4. AS 42.45.110 is amended by adding new subsections to read:                                               
26            (j)  The power cost equalization for each kilowatt-hour calculated under (c) of                              
27       this section may be determined for a utility without historical kilowatt-hour sales data                          
28       by using kilowatt-hours generated.                                                                                
29            (k)  Notwithstanding (c) of this section, an electric utility shall receive not less                         
30       than five cents a kilowatt-hour in power cost equalization under (b)(2) of this section.                          
31    * Sec. 5. AS 42.45.150(2) is amended to read:                                                                      
01                 (2)  "eligible electric utility" or "electric utility" means a public,                                  
02       cooperative, or other corporation, company, individual, or association of individuals,                            
03       and includes the lessees, trustees, or receivers appointed by a court, that                                       
04                      [(A)]  owns, operates, manages, or controls a plant or system for                                  
05            the furnishing, by generation, transmission, or distribution, of electric service                            
06            to the public for compensation [;                                                                            
07                      (B)  DURING CALENDAR YEAR 1983, HAD A                                                              
08            RESIDENTIAL CONSUMPTION LEVEL OF POWER ELIGIBLE FOR                                                          
09            POWER COST EQUALIZATION UNDER FORMER AS 44.83 OF LESS                                                        
10            THAN 7,500 MEGAWATT HOURS OR HAD A RESIDENTIAL                                                               
11            CONSUMPTION LEVEL OF POWER ELIGIBLE FOR POWER COST                                                           
12            EQUALIZATION UNDER FORMER AS 44.83 OF LESS THAN 15,000                                                       
13            MEGAWATT HOURS IF THE UTILITY SERVED TWO OR MORE                                                             
14            MUNICIPALITIES OR UNINCORPORATED COMMUNITIES; AND                                                            
15                      (C)  DURING CALENDAR YEAR 1984, USED DIESEL                                                        
16            FIRED GENERATORS TO PRODUCE MORE THAN 75 PERCENT OF                                                          
17            THE ELECTRICAL CONSUMPTION OF THE UTILITY; AN ELECTRIC                                                       
18            UTILITY THAT IS A SUBSIDIARY OF ANOTHER ELECTRIC UTILITY                                                     
19            IS AN "ELIGIBLE ELECTRIC UTILITY" IF THE OPERATIONS OF THE                                                   
20            SUBSIDIARY, CONSIDERED SEPARATELY, MEET THE ELIGIBILITY                                                      
21            REQUIREMENTS OF AS 42.45.100 - 42.45.150; IF AN ELECTRIC                                                     
22            UTILITY DID NOT RECEIVE POWER COST ASSISTANCE IN 1983 BUT                                                    
23            IS OTHERWISE ELIGIBLE FOR POWER COST EQUALIZATION                                                            
24            UNDER AS 42.45.100 - 42.45.150, THE UTILITY IS AN "ELIGIBLE                                                  
25            ELECTRIC UTILITY"];                                                                                          
26    * Sec. 6. AS 42.45.150(2), as amended by sec. 5 of this Act, is amended to read:                                   
27                 (2)  "eligible electric utility" or "electric utility" means a public,                                  
28       cooperative, or other corporation, company, individual, or association of individuals,                            
29       and includes the lessees, trustees, or receivers appointed by a court, that                                       
30                      (A)  owns, operates, manages, or controls a plant or system for                                
31            the furnishing, by generation, transmission, or distribution, of electric service                            
01            to the public for compensation;                                                                          
02                      (B)  during calendar year 1983, had a residential                                              
03            consumption level of power eligible for power cost equalization under                                    
04            former AS 44.83 of less than 7,500 megawatt-hours or had a residential                                   
05            consumption level of power eligible for power cost equalization under                                    
06            former AS 44.83 of less than 15,000 megawatt-hours if the utility served                                 
07            two or more municipalities or unincorporated communities; and                                            
08                      (C)  during calendar year 1984, used diesel-fired generators                                   
09            to produce more than 75 percent of the electrical consumption of the                                     
10            utility; an electric utility that is a subsidiary of another electric utility is an                      
11            "eligible electric utility" if the operations of the subsidiary, considered                              
12            separately, meet the eligibility requirements of AS 42.45.100 - 42.45.150; if                            
13            an electric utility did not receive power cost assistance in 1983 but is                                 
14            otherwise eligible for power cost equalization under AS 42.45.100 -                                      
15            42.45.150, the utility is an "eligible electric utility";                                                
16    * Sec. 7. AS 42.45.250(e) is amended to read:                                                                      
17            (e)  Loans made from the bulk fuel revolving loan fund to one borrower in any                                
18       fiscal year                                                                                                       
19                 (1)  may not exceed $750,000 [$500,000], or, if the borrower is a                                   
20       cooperative corporation organized under AS 10.15 or an electric cooperative                                       
21       organized under AS 10.25 and uses the loan to purchase bulk fuel on behalf of more                                
22       than one community, may not exceed the lesser of $750,000 [$500,000] multiplied by                            
23       the number of communities on whose behalf the bulk fuel is to be purchased, or                                    
24       $1,800,000;                                                                                                       
25                 (2)  shall be repaid in one year or less; and                                                           
26                 (3)  may not exceed 90 percent of the wholesale price of the fuel                                       
27       purchased.                                                                                                        
28    * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to                          
29 read:                                                                                                                   
30       ALASKA RESOURCE REBATE PROGRAM ESTABLISHED. Subject to                                                            
31 appropriations and availability of funds for the program, the Alaska resource rebate program                            
01 is established to provide residents of the state with resource rebates under sec. 9 of this Act                         
02 and to provide persons with emergency energy relief under sec. 10 of this Act.                                          
03    * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to                          
04 read:                                                                                                                   
05       RESOURCE REBATES. (a) To provide residents of the state with a resource rebate,                                   
06 the amount of the 2008 permanent fund dividend shall be increased. After calculating the                                
07 amount of the 2008 dividend under AS 43.23.025, the commissioner of revenue shall add                                   
08 $500 to determine the total amount of that dividend.                                                                    
09       (b)  A veteran or the spouse or dependent of a living or deceased veteran who did not                             
10 apply for the 2008 permanent fund dividend and is eligible for veterans' benefits under 38                              
11 U.S.C. 1315, 1513, 1521, 1541, and 1542 may apply to the Department of Revenue for a $500                               
12 Alaska resource rebate payment for 2008. The individual shall apply on a form provided by                               
13 the department not later than October 1, 2008, and shall demonstrate that the individual would                          
14 have been eligible to receive a 2008 permanent fund dividend under AS 43.23, except that the                            
15 individual did not apply for that dividend.                                                                             
16       (c)  A veteran or the spouse or dependent of a living or deceased veteran who is                                  
17 eligible for veterans' benefits under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 who is                                 
18 denied or receives reduced payments under those provisions or reduced health care benefits                              
19 solely because the $500 increase in the dividend under (a) of this section or the $500 payment                          
20 under (b) of this section received by the individual is counted as income is eligible for cash                          
21 assistance under AS 47.25.120 - 47.25.300 (general relief assistance). Notwithstanding the                              
22 limit in AS 47.25.130, the individual is entitled to receive the same amount as the individual                          
23 would have received under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542 and as a health care                               
24 benefit as a result of being eligible under 38 U.S.C. 1315, 1513, 1521, 1541, and 1542, had                             
25 the $500 increase or payment not been received under (a) or (b) of this section.                                        
26       (d)  Subject to appropriation, the amount necessary for resource rebates to increase                              
27 2008 permanent fund dividends under (a) of this section shall be transferred from the general                           
28 fund to the dividend fund (AS 43.23.045).                                                                               
29    * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to                         
30 read:                                                                                                                   
31       EMERGENCY ENERGY RELIEF. (a) The Alaska Energy Authority shall provide                                            
01 persons with emergency energy relief payments to offset the cost of fuel used for residences.                           
02       (b)  Subject to (e) of this section, a person may receive an emergency energy relief                              
03 payment based on the amount that exceeds $3.00 a gallon that the person pays for each gallon                            
04 of fuel delivered September 1, 2008, through March 31, 2009, and September 1, 2009,                                     
05 through March 31, 2010, for a building in the state that is primarily used for one or more                              
06 residences. The amount of the emergency energy relief payment must include an amount to                                 
07 reimburse the sales tax that the individual paid for the fuel for which the emergency energy                            
08 relief payment is made, except that the amount of reimbursement included in the payment                                 
09 must be based on the sales tax rate in effect on the effective date of this section. Payments                           
10 may not be made for more than 600 gallons of fuel used for a single family residence during                             
11 September 1, 2008, through March 31, 2009, and 600 gallons of fuel used for a single family                             
12 residence during September 1, 2009, through March 31, 2010. Payments may not be made for                                
13 more than 300 gallons of fuel for each unit in a multifamily building used for that building                            
14 during September 1, 2008, through March 31, 2009, and 300 gallons of fuel for each unit in a                            
15 multifamily building used for that building during September 1, 2009, through March 31,                                 
16 2010. A payment may not be made for fuel used for a building owned by a governmental                                    
17 entity. A person may apply for and receive more than one emergency energy relief payment.                               
18 If the authority estimates that appropriations to the authority are insufficient to fully fund                          
19 emergency energy relief, the authority may eliminate or reduce the payments on an equitable                             
20 basis.                                                                                                                  
21       (c)  A landlord or lessor that receives a payment under this section shall pass on a                              
22 benefit to the landlord's or lessor's tenant by lowering the amount of rent by the amount                               
23 attributable to the tenant's unit. A landlord or lessor may retain up to 10 percent of the                              
24 payment otherwise required to be passed on to the tenant to cover administrative costs. Failure                         
25 to comply with the requirement of this subsection is a violation of AS 45.50.471. The                                   
26 authority may audit the books and records of a landlord or lessor for compliance with this                              
27 subsection.                                                                                                             
28       (d)  The authority                                                                                                
29            (1)  shall administer this section, but may contract for the performance of some                             
30 or all of those administrative duties; and                                                                              
31            (2)  may adopt regulations under AS 44.62 to implement this section.                                         
01       (e)  A person who is an individual is eligible to receive a payment under this section                            
02 only if the individual is a state resident under AS 01.10.055. In addition, to receive a payment                        
03 under this section, a person shall                                                                                      
04            (1)  apply, before July 1, 2010, for the payment on a form provided by the                                   
05 authority;                                                                                                              
06            (2)  provide, with each application, proof of purchase of fuel from a qualified                              
07 distributor on the list prepared under (f) of this section;                                                             
08            (3)  verify that the fuel is used for a building that is primarily used for one or                           
09 more residences, identify the building, and identify the number of residential units in the                             
10 building;                                                                                                               
11            (4)  verify that the building is not owned by a government entity;                                           
12            (5)  supply other information that may be required by the authority.                                         
13       (f)  A business or other entity that supplies fuel for use in residential buildings may                           
14 apply in a manner required by the authority for inclusion on the qualified distributor list                             
15 prepared and kept updated by the authority under this subsection. As a condition of becoming                            
16 a qualified distributor, the business or other entity must submit a signed statement to the                             
17 authority, under penalty of unsworn falsification, on a form or in a format prescribed by the                           
18 authority, that the business or other entity will not increase its price for fuel solely in response                    
19 to this section, and that the business's or other entity's pricing policy will remain consistent                        
20 with prior practices and be based on the same criteria, as though this section had not been                             
21 enacted. The authority may audit a qualified distributor's books and records to confirm that                            
22 the statement made under this subsection is complete and accurate. If the distributor                                   
23 reasonably believes a delivery of fuel is made to a building primarily used for one or more                             
24 residences, during September 1, 2008, through March 31, 2009, or during September 1, 2009,                              
25 through March 31, 2010, the distributor shall agree to identify the delivery as residential in a                        
26 manner prescribed by the authority. The distributor shall agree to submit to the authority its                          
27 billing statements for purchases of fuel for residences and related customer and sales                                  
28 information that may be requested by the authority from time to time. The distributor shall                             
29 provide other information required by the authority.                                                                    
30       (g)  A person aggrieved by a decision of the authority regarding the person's eligibility                         
31 to receive an emergency energy relief payment, other than a determination based on                                      
01 insufficient funding for emergency energy relief, may request a hearing before the office of                            
02 administrative hearings established under AS 44.64.                                                                     
03       (h)  A person is liable to the state for the value of emergency energy relief improperly                          
04 paid under this section if the improper payment was based on inaccurate or false information                            
05 provided by the person. In a civil action brought by the state to recover from the person the                           
06 value of the emergency energy relief improperly paid, the state may recover from the person                             
07 the costs of investigation and prosecution of the civil action, including attorney fees as                              
08 determined under court rules.                                                                                           
09       (i)  In determining the eligibility of an individual under a public assistance program                            
10 administered by the Department of Health and Social Services in which eligibility for                                   
11 assistance is based on financial need, the Department of Health and Social Services may not                             
12 consider a payment under this section as income or resources received by the individual or by                           
13 a member of the individual's household unless required to do so by federal law. The                                     
14 Department of Health and Social Services shall notify all recipients of public assistance of the                        
15 effects of receiving emergency energy relief.                                                                           
16       (j)  An individual who is denied medical assistance under 42 U.S.C. 1396 - 1396v                                  
17 (Title XIX, Social Security Act) solely because of the receipt of a payment under this section                          
18 by the individual or by a member of the individual's household is eligible for state-funded                             
19 medical assistance under AS 47.25.120 - 47.25.300 (general relief assistance). The individual                           
20 is entitled to receive, for a period not to exceed four months, the same level of medical                               
21 assistance as the individual would have received under 42 U.S.C. 1396 - 1396v had the                                   
22 emergency energy relief not been received.                                                                              
23       (k)  An individual who is denied assistance solely because a payment under this                                   
24 section received by the individual or by a member of the individual's household is counted as                           
25 income or resources under federal law is eligible for cash assistance under AS 47.25.120 -                              
26 47.25.300 (general relief assistance). Notwithstanding the limit in AS 47.25.130, the                                   
27 individual is entitled to receive, for a period not to exceed four months, the same amount as                           
28 the individual would have received under other public assistance programs had the emergency                             
29 energy relief not been received.                                                                                        
30       (l)  A program that is established before the effective date of this section, that is                             
31 administered by the state or any of its instrumentalities or municipalities or by a Native                              
01 organization under AS 47.27.070, 47.27.200, or 47.27.300, and for which eligibility is based                            
02 on financial need may not consider a payment under this section as income or resources                                  
03 unless required to do so by federal law.                                                                                
04       (m)  A veteran or the spouse or dependent of a living or deceased veteran who is                                  
05 denied or receives reduced disability payments solely because a payment received under this                             
06 section by the individual is counted as income is eligible for cash assistance under                                    
07 AS 47.25.120 - 47.25.300 (general relief assistance). Notwithstanding the limit in                                      
08 AS 47.25.130, the veteran or the spouse or dependent of a living or deceased veteran is                                 
09 entitled to receive the same amount as the individual would have received under 38 U.S.C.                               
10 1315, 1513, 1521, 1541, and 1542 had the emergency energy relief not been received.                                     
11       (n)  Notwithstanding any contrary provision of state law, a payment under this section                            
12 is exempt from levy, execution, garnishment, or any other remedy for debt collection until                              
13 after the payment has been received by the person. No other exemption applies to emergency                              
14 energy relief payments received under this section.                                                                     
15       (o)  A form provided by the authority under (e) of this section must include a warning                            
16 that the submission of incomplete or inaccurate information is punishable as unsworn                                    
17 falsification in the second degree under AS 11.56.210.                                                                  
18       (p)  A person is guilty of a class A misdemeanor if the person                                                    
19            (1)  uses fuel, payment for which has been partially reimbursed with a payment                               
20 under this section,                                                                                                     
21                 (A)  for a purpose other than use in a building that is primarily used for                              
22       one or more residences; or                                                                                        
23                 (B)  for a building that is owned by a governmental entity; or                                          
24            (2)  resells fuel, payment for which has been partially reimbursed with a                                    
25 payment under this section.                                                                                             
26       (q)  In this section,                                                                                             
27            (1)  "authority" means the Alaska Energy Authority created under                                             
28 AS 44.83.020;                                                                                                           
29            (2)  "fuel" means heating oil or propane.                                                                    
30    * Sec. 11. AS 42.45.110(k) is repealed June 30, 2010.                                                              
31    * Sec. 12. AS 42.45.115 is repealed.                                                                               
01    * Sec. 13. Sections 10(a), (b), (d) - (f), (i) - (o), and (q) of this Act are repealed September 1,                
02 2010.                                                                                                                   
03    * Sec. 14. Sections 3 and 6 of this Act take effect June 30, 2010.                                                 
04    * Sec. 15. Sections 2, 4, 5, 11, and 12 of this Act take effect October 1, 2008.                                 
05    * Sec. 16. Sections 1 and 7 - 10 of this Act take effect immediately under AS 01.10.070(c).